Formula One's TV Rights Are Up for Grabs, but Media Companies Aren't Racing to Bid
Formula One is among the fastest-growing sports in the world, oozing sex appeal with young drivers and zippy cars. But it is having trouble translating that revved-up popularity into the large-scale rights package it wants.
F1, which Liberty Media FWONA 1.34%increase; green up pointing triangle bought in 2017, has been shopping a rights package at around $150 million to $180 million a year beginning with the 2026 season, according to people familiar with the matter, though there isn't an official asking price. That would be up to double what ESPN has been paying recently, and a far cry from a multiyear agreement it reached with F1 in 2018, when the Disney-owned network had the right to air races for free.
U.S. viewership for live F1 races on ESPN roughly doubled since 2018, to 1.1 million a season in 2024, according to Nielsen data. And this season is off to a strong start, ESPN said.
ESPN walked away late last year from its exclusive negotiation window for a new package. Netflix, Warner Bros. Discovery WBD 1.43%increase; green up pointing triangle, Fox, Amazon.com and NBC are lukewarm on the offering, too—at least, at the current price, according to people familiar with those companies' discussions.
The National Basketball Association and National Football League have inked giant media deals in recent years. But it is becoming harder for entertainment companies to justify big spending on other sports, as networks face continued challenges from cord cutting. Meanwhile, streaming services aren't scrambling for full-season packages.
'It's a cool sport, no doubt,' said Patrick Crakes, a sports media consultant and former senior executive at Fox Sports, of F1. 'But cool doesn't pay the bills.'
Fox Corp. and The Wall Street Journal's parent company, News Corp, share common ownership.
Some F1 rights bidders are still likely in the mix, and F1 is expected to improve on its existing deal, according to industry watchers—including Crakes.
Research firm Ampere Analysis recently estimated that F1's U.S. rights package is worth above $100 million a year, but not the $180 million industry reports earlier said it was seeking.
Derek Chang, who took over as chief executive of Liberty in February, said he is looking for the best mix of exposure to new fans and the highest-paying deal, but recognizes the industry is shifting—and challenging—for both broadcasters and streamers.
'The whole media world is a very fluid situation,' said Chang.
The lack of fervor over F1's U.S. live-TV rights stands in contrast with global excitement around the sport.
Models and actors clamber for spots in the paddock, close to the action as men pile into single-seat cars and navigate circuits in destinations including Australia, Mexico and Italy. High-end brands vie for prime promotional placement.
Netflix's 'Drive to Survive' documentary series helped catapult F1's popularity in the U.S. Then came 'Gran Turismo,' a 2023 Sony film based on the story of a gamer who got a shot at competing in real life. This June, Warner Bros. is distributing an Apple film, 'F1,' starring Brad Pitt.
Despite the Hollywood hype around F1, the races themselves aren't blockbuster draws. That is partly because of timing: Many races air early Sunday mornings for U.S. viewers.
Some fans watch on-demand replays via the F1 TV service. That service is part of the media-rights discussion, according to a person familiar with the company's discussions.
The coming U.S. rights deal represents a small slice of F1's revenue, but Liberty has focused on growing F1 in the country and the new deal will help determine the sport's next chapter here.
The success of 'Drive to Survive' and earlier reports prompted speculation that Netflix might want in on F1 rights. But it isn't currently planning to bid, according to a person familiar with the matter.
Three-quarters of F1 fans already have Netflix subscriptions, according to data from Ampere, leaving minimal chance to attract new customers, but potential opportunities for subscriber retention.
ESPN hasn't completely ruled out new talks on F1, according to people familiar with the matter. Still, it has been making many tough choices lately.
Disney signed on to a $2.6 billion a year deal with the NBA last year, and ESPN recently ended its 35-year relationship with Major League Baseball, saying it was unwilling to continue paying the $550 million the league wanted for a games package. It is also preparing to bring its programming onto a new streaming service.
ESPN might be more inclined to bid for F1 if the company thought it would drive subscriptions to that service, said John Skipper, ESPN's former president.
Write to Isabella Simonetti at isabella.simonetti@wsj.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Disney to Pay Comcast $438.7M for Full Hulu Ownership, Ending Valuation Dispute
The Walt Disney Company (NYSE:DIS) is one of the best Dow stocks to invest in. The company has agreed to pay Comcast $438.7 million to buy out its remaining stake in the streaming service Hulu, ending a lengthy appraisal process. In 2023, The Walt Disney Company (NYSE:DIS) announced its plan to acquire Comcast's 33% share of Hulu, paying $8.6 billion based on a minimum value of $27.5 billion that the companies had agreed on in 2019. This move wasn't unexpected, as reports had indicated Disney's intention to gain full control of Hulu. The Walt Disney Company (NYSE:DIS) had originally acquired a two-thirds stake in Hulu through its purchase of Fox Corp.'s entertainment assets. After the initial payment, Disney and Comcast entered an appraisal process initially set to finish in 2024. The deal is expected to be finalized by July 24. Disney CEO Bob Iger made the following statement: 'We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.' Meanwhile, The Walt Disney Company (NYSE:DIS) has started merging Hulu with its other streaming services, which are also bundled with ESPN+, its sports streaming platform. While we acknowledge the potential of DIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
35 minutes ago
- Yahoo
SEC scrubbed guidance on DEI in asset manager selection from website
The Securities and Exchange Commission has purged guidance from its website regarding fund manager diversity, but it was hard to find even before President Donald Trump's second term. That pullback from promoting diversity, equity and inclusion in asset management comes as part of the Trump administration's executive orders targeting "DEI" programs. And it underscores the confusing current state of federal efforts to ensure that more women- and minority-owned fund firms get a fair shot at doing business with large government pensions and retirement plans. For advocates, such programs open doors to capital and to rewarding careers as financial advisors or wealth and asset management professionals and, in some cases, the enforcement of crucial civil rights laws. To Trump's supporters, DEI has expanded access for some at the expense of others, to the point that consideration of factors involving race, gender and other identities has turned more important than merit in, say, hiring or the awarding of contracts. The SEC has removed an October 2022 "frequently asked questions" memo explaining how the fiduciary duty applies to the use of DEI criteria in the selection of asset managers, according to a recent study by the U.S. Government Accountability Office, an independent watchdog agency that reports to Congress. The SEC issued the FAQ during President Joe Biden's administration, at which time critics questioned its importance and obscure previous location on the agency's website. Now, with so many aspects related to DEI in administrative or legal limbo, the way forward after small but notable progress in opportunities for women and minority financial professionals looks anything but clear. "I'm optimistic, and that's because we've seen this movie before," said Dorien Nuñez, the president and director of research with consulting firm OMNI Research Group and co-founder of OMNI Wall Street Advantage, a chartered financial analyst training, mentoring and internship organization. He cited the Reagan administration's unsuccessful push to eliminate the Small Business Administration in the 1980s. "This is definitely more aggressive," Nuñez said. "ESG is flourishing globally. DEI is flourishing globally. It's just the political will and megaphone that is fighting against it so much, so vocally." For impact managers whose strategies seek to close wealth gaps through clients' investment portfolios, the administration's anti-DEI actions are "really hampering their marketing efforts" and capital-raising, said Will Gholston, a CFA and certified financial planner who is the vice president of investments with New York-based registered investment advisory firm Re-Envision Wealth. At this point, any fund manager "would definitely think twice before bringing that type of product to market in this environment," he said. "I am currently at a Black-owned firm that's made racial equity investing the centerpiece of our strategies," Gholston said. "You have to be much more cautious in the way that you design products, the way that you talk about products. There is that risk that you're going to be in trouble." READ MORE: Which publicly traded firms have the best and worst racial equity grades? Representatives for the SEC didn't respond to inquiries about the removal of the guidance from its website or the findings of the GAO report, which updated the watchdog's 2017 study on asset manager diversity and came at the request of Democratic lawmakers three years ago. The dearth of assets managed by women- or minority-owned firms received more attention following the 2020 murder of George Floyd as part of the industry's response to the nationwide protests. The GAO found some signs of change at certain pension plans and across the industry. Five federal pensions told the researchers that 61 women- or minority-owned asset managers were overseeing a combined $4.06 billion on their behalf at the end of 2022 — but that was still only 2.8% of the externally managed assets across the plans. On the other hand, that is a far higher share than in asset management in general. As of 2023, the industry-wide assets managed by women- and minority-owned firms had ticked up to 1.1% from less than 1% in 2017. However, that tiny blip added up to a total of $1.3 trillion in assets managed by 340 firms, compared to $529 billion at just 180 firms only six years earlier. That's a 146% surge in assets, or a difference of $771 billion in AUM, and an 89% jump in the net increase of 160 more firms with some degree of ownership by women or Black, Hispanic, Asian American or other minority group members. READ MORE: DOGE cuts to fair housing grants hit HOME for financial advisor The ramifications of Trump's DEI orders to the SEC remain difficult to ascertain, based on the agency's website. The conservative Heritage Foundation's Project 2025 policy blueprint for Trump's administration called for the SEC to end "discrimination based on immutable characteristics" in the form of "offices at financial regulators that promote racist policies (usually in the name of 'diversity, equity, and inclusion')." And, in February, SEC staff informed GAO researchers that they had taken down the previous guidance about "investment advisers' consideration of DEI factors when recommending or selecting other advisers" based on Trump's executive orders in the previous month, the GAO report said. "As a result, we removed our assessment of this guidance from our review," the report's authors, Director of Financial Markets and Community Involvement Michael Clements and Director of Education, Workforce and Income Security Tranchau "Kris" Nguyen wrote. "SEC staff also told us that they were analyzing the potential impact of the executive orders on their activities related to promoting and collecting diversity policies and practices through SEC's diversity self-assessment form for its regulated entities." The link to the 2022 FAQ now goes to a "403 error" page. But still available are the "Diversity self-assessment tool" for regulated entities, a bare section explaining the purposes of the SEC Office of Minority and Women Inclusion under the Dodd-Frank Law and a statement by two commissioners praising the now-purged guidance. The report, which stated that the GAO hasn't "determined the scope and effect of the January 2025 executive orders or their impact on SEC programs and activities" didn't include any information about what specifically made the FAQ out of compliance with Trump's executive orders. "Staff from SEC's Division of Investment Management issued this guidance to clarify that investment advisers may consider DEI factors when recommending or selecting other advisers, such as asset management firms, provided that doing so is consistent with the client's objectives, the scope of the relationship and the adviser's disclosures," Clements and Nguyen wrote in a footnote. READ MORE: Fighting systemic racism with estate planning — one client at a time Even before Trump took office, some industry experts wondered what, if anything, to conclude from the FAQ. The guidance "raises more questions than it answers," according to a November 2022 blog by consulting firm Patomak Global Partners entitled "The Curious Case of the Hidden FAQ." The SEC issued no corresponding public announcement about the guidance, the blog noted. And the agency didn't even include the FAQ alongside others available in the FAQ section of its website. In fact, the mere existence of the guidance may not have become publicly known without two of the commissioners releasing the statement. And any asset allocators or managers would have found it difficult to use in the first place, according to Patomak, which described it as "a check-the-box exercise to implement a controversial recommendation." "Even if an adviser stumbled upon the FAQ," the blog continued, "it does not provide helpful guidance as to how an adviser can incorporate DEI factors into its selection or recommendation of other advisers consistent with its fiduciary duty to clients. Investment advisers should be wary of overreliance on this FAQ. Staff FAQs have no legal force or effect and do not alter or amend applicable law, given that they represent the views of SEC staff, not the Commission. Choosing an investment adviser with a short track record or minimal AUM can open an investment adviser to significant liability in the event of subpar performance or an incident of defalcation, a problem this nonbinding FAQ is unlikely to solve, particularly in light of the fact that it contains no guidance on how to balance these competing concerns." READ MORE: How financial advisors can help close the racial wealth gap Regardless, advocates like Nuñez and Gholston will continue their work in any political climate — and welcome collaboration from other industry professionals in the mission to increase opportunities and align clients' portfolios to their principles. "The short answer is, contact me," Nuñez said. "Some of us have been out here doing this for decades, and we're now working closer together than before. But it is very fragmented." Taking down the guidance is "definitely a move in the wrong direction" by the SEC, but efforts to increase women- and minority representation in asset management "have been so inadequate to date that there's not much room to decline," Gholston said. And that has spanned Democratic and Republican administrations, he pointed out. The underlying trends in the investing marketplace aren't going away in Trump's second term, according to Gholston. "The desire for greater fairness and a level playing field in the investment management world has not declined amongst the populace, the investment world and our clients," he said. "It's very likely that, over the long term, we're going to see a renewed effort in this space." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Eater
36 minutes ago
- Eater
La Luna's Little Sibling Debuts This Weekend in Logan Square
After six years in Pilsen, Samantha Sanchez wants more. Sanchez and sister Corina are about to open their second restaurant, La Lunita, in Logan Square. Think of it as the name suggests — it's La Luna's little sibling. The new restaurant will bring over favorites from Pilsen with a few notable changes to the menu. Opening date should be Saturday, June 14 at 2539 N. Milwaukee Avenue. While the Pilsen location uses tortillas from El Milagro, a beloved local manufacturer, La Lunita will serve tacos wrapped in corn tortillas made on premises. The menu from chef Marco Colin will focus more on platters and entrees. Look for chicken mole and more steak dishes. There's also a grilled and smoked octopus. Colin will make use of a wood-burning grill. Sanchez is excited about serving wines from Mexico, something she didn't have access to until recently: 'I'm taking the time to carefully select the spirits I want to bring in and embrace,' she says. 'You know, certain small businesses, certain local and Latin-owned wineries.' The Pilsen restaurant opened six years ago and has seen changes along 18th Street. The small and narrow restaurant and bar has brought a new energy to the area, and Sanchez hopes that translates in Logan Square. Designwise, there's no patio, but a garage door-style window in the front swings out to improve circulation. The space also utilizes the signature flower tile from the Pilsen location. There's about 80 seats inside with room for 20 at the bar. La Lunita's drink menu intrigues as every beverage can be made non-alcoholic. It's cost effective and also gives those who are avoiding booze more choices. Sanchez didn't want to treat those customers like a vegetarian in the '80s, with menus usually featuring a single sad pasta or salad. 'I didn't like giving them a B.S. cocktail,' Sanchez says. 'I wanted them to feel like they could still order off the menu exactly like what everybody else is ordering.' Sanchez feels more poised in opening her second restaurant. She's found her own niche and is contributing to causes like Let's Talk Womxn, and breaking out from her father's shadow. Sam Sanchez was the founder of Wrigleyville mainstay John Barleycorn. He's been very vocal in his political beliefs as of lat, as ICE protests and raids dominate the headlines. Samantha Sanchez is thankful for her family's support, but wants to establish her own identity and a new company called Culture Hospitality. She wants to open more restaurants in other parts of Chicago. With La Luna and La Lunita, she found that Pilsen and Logan Square share similar qualities. 'I felt that everybody knew each other and was a neighbor — everybody wanted to connect,' she says. 'I feel that same energy.' Check out photos of the food, drink, and space below. La Lunita , 2539 N. Milwaukee Avenue , opening on Saturday, June 14; opening hours will be 4 p.m. to midnight on Tuesday through Thursday; 3 p.m. to 1 a.m. on Friday; 2 p.m. to 10 p.m. on Saturday and Sunday See More: Chicago Restaurant News Eater Inside
